The lease will be subject to a corporate guarantee from Driven Funding Holdco, LLC. Driven Funding Holdco, LLC is comprised of over 3,500 franchisee and corporate operated Take 5 Oil Changes as well as the royalty revenue streams of Driven Brands' other franchisees such as Meineke, Maaco, CARSTAR, Merlin, Econo Lube, and others.
The U.S. oil change service market size is valued at approximately $12 billion and is expected to grow at a CAGR of 5.5% from 2024 to 2030. This growth is driven by an ever-increasing number of cars on the road, a rising demand for oil change services to enhance vehicle performance, and government mandates for timely repair and maintenance of vehicles.
Quick oil change businesses provide essential, routine vehicle maintenance that consumers prioritize regardless of economic conditions. This makes them highly resilient during downturns, ensuring steady demand and stable cash flow for investors.
The average age of vehicles on the U.S. roads has reached an all-time high of over 12.5 years, as consumers hold their cars longer due to rising vehicle prices and financing costs. This trend, combined with increasing used-car ownership, is fueling sustained demand for routine maintenance services like oil changes, making Take 5 businesses well-positioned for long-term stability and growth.